Overview

Risk-weighted, short-duration, multisector income strategy that actively manages interest-rate and credit risk

About this Fund

  • The fund actively manages a risk-weighted barbell of rates and credits, which are negatively correlated to each other across market cycles
  • Seeks to provide attractive income across a full market cycle
  • Risk-weighted structure is designed to generate a high level of “efficient income”

Investment Approach

  • Government bonds from US and non-US issuers
  • Corporate bonds, with up to 35% in below-investment grade bonds

Meet the Team

We’re constantly reinventing ourselves. We don’t just sit still. We adapt to new information so we can find new factors that work.

Gershon M. Distenfeld, CFA—Co-Head—Fixed Income; Director-Credit

 
Strategic Approach

Invest for Efficient Income

Looking for more information about efficient income strategies? Explore our other products and thought leadership. 

 
 

Investment Definitions

Alpha is the risk-adjusted measurement of "excess return" over a benchmark. Beta is a measure of an investment’s volatility in comparison to the market as a whole. Duration is a measure of the sensitivity of an asset or portfolio’s price to interest rate movements. Information ratio is a measurement of portfolio returns beyond the returns of a benchmark, compared to the volatility of those returns. R-squared is the percentage of a portfolio’s price movements that can be explained by movements in a benchmark index. Sharpe ratio is a measure of the fund’s return relative to the investment risk it has taken. A higher Sharpe ratio means the fund’s returns have been better given the level of risk the fund has taken. Standard deviation is a measure of the dispersion of a portfolio’s return from its mean. Tracking error is the difference in actual performance between a portfolio and its corresponding benchmark. Up capture measures the percentage of market gains captured when markets are up. Down capture measures the percentage of market losses endured when markets are down. 

Risks To Consider

  • Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (a/k/a junk bonds) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade than other types of securities.

  • Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered, and the bond’s value may decline.

  • Derivatives Risk: Derivatives may be more sensitive to changes in market conditions and may amplify risks.

  • Foreign (Non-U.S.) Investment Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade than domestic securities due to adverse market, economic, political, regulatory, or other factors.

  • Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments.

  • Interest Rate Risk: As interest rates rise, bond prices fall and vice versa, long-term securities tend to rise and fall more than short-term securities.

  • Leverage Risk: To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates, and any increase or decrease in the value of the Fund’s investments.

  • Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value. 

  • Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit our Literature Center or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

    AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the manager of the funds. 

    AB mutual funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.

    Investment Products Offered: Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed

    The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P..


 

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